Teenagers have crash rates are higher than any other age group. Almost 400,000 people are injured in teen driving incidents each year. On average when a teen driver is added to a family auto policy, the rates may rise as much as eighty percent.
Why does teenage car insurance cost so much?
The reason is that insurance companies are raising the rates to contend for the resulting higher amount of activity that can come from a teen driver. The obvious reason for increased teenage car insurance rates is that the teen driver does not have the experience and maturity in their early driving years to contend with the issues presented with driving.
A female teen driver will be somewhat lower than their male counterparts. Female teens have a higher rate from age 15 to age 21. A male teen driver has higher rates from age 16 to age 25. The rates can be lowered if the teens are married within this time frame.
Here are some options to consider trying in order to minimize the premium increase. These are credits that many insurance companies offer.
Many insurance companies offer “good student discounts”. The credits will vary per student but this credit helps the parents and the student at the same time.
Some insurance companies may also provide a discount for young drivers who use devices that monitor their behavior behind the wheel.
Check with your insurance agent before making a car decision; some vehicles have a much higher insurance premium just because the type of car. Sports cars are an obvious question but sometimes a sedan may cost more to insure than expected.
Also think about old vehicles that may not have to have full coverage including comprehensive and collision.
Adding a young driver to your insurance is not an easy step for parents but hopefully these may help minimize the insurance cost.
Long Insurance Group partners with clients to provide the right type of coverage for their needs.
For more details on this or related topics contact Long Insurance at 972-750-2406 to speak with one of our insurance specialists or find us online at www.longinsgroup.com.